Superman’ building owners: Former tenant Bank of America owes $23 million

PROVIDENCE — The owners of the iconic “Superman building” are accusing their former tenant, Bank of America, of leaving behind 76 tractor-trailers full of office furniture, a crumbling limestone façade,...

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By
Katie Mulvaney
Posted Nov. 15, 2013 @ 12:01 am

PROVIDENCE — The owners of the iconic “Superman building” are accusing their former tenant, Bank of America, of leaving behind 76 tractor-trailers full of office furniture, a crumbling limestone façade, and outdated wiring, amounting to $23 million in disrepair.

Lawyers for High Rock Westminster LLC, which bought the downtown high-rise for $33.2 million in 2008, appeared in U.S. District Court Thursday to state its case.

Daniel J. Lyne argued Bank of America breached its lease by failing to bring the building up to fire code, leaving the new owners with electrical problems and a host of other deficiencies. The bank had maintained the limestone exterior only up to safety standards so pieces didn’t drop on pedestrians, he said.

“It makes this building entirely un-rentable. It makes this building un-showable,” Lyne told U.S. Magistrate Judge Lincoln D. Almond.

Jonathan W. Fitch countered for Bank of America that the bank had hired a “premiere” property management company, CB Richard Ellis, to maintain the building. What the owners are expecting amounts to renovations, not upkeep, he said.

“The evidence will show that the Bank of America was a responsible tenant in that building,” Fitch said. “The bank did not have an obligation to renovate this building.”

The bank has agreed, in the past few days, to pay $350,000 for the removal of the office furniture. That process is expected to start within days, Lyne said.

High Rock is seeking an additional $2 million in back rent for the period in which the owners allege they could not bring in new tenants, Lyne said.

Almond asked the parties if they would be open to mediating the case. Fitch said yes.

Almond suggested that a neutral expert would first need to be hired to evaluate the repairs that need to be done.

The 26-story Art Deco skyscraper had operated as a bank after it opened in 1928, first for the Industrial Trust Co. for 76 years, then its successor Fleet. When Fleet sold the building to Westminster Office in 2003, Fleet agreed to lease the building for 10 years.

Bank of America bought Fleet in 2004. The company confirmed to High Rock, as it considered purchasing the building, that its lease would remain in effect. That lease expired April 30.

In its lawsuit, High Rock asserts that the lease bound Bank of America to maintain the building. Instead, the HVAC, fire protection and electrical systems are aging and in need of repair. The work to the exterior is estimated at $14 million alone, it says.

Bank of America denied the allegations, arguing that it was not obligated to remove the furnishings. The bank countersued High Rock, accusing the company of breaching the lease by continuing to bill the bank for “hold over” rent.

High Rock has plans to convert the 111 Westminster St. building into 278 apartments, with its grand banking room and underground vault for shops and restaurants.

Earlier this year, High Rock asked state and city leaders for up to $75 million in public financing, including $39 million in state assistance and $10 million to $15 million in city tax breaks. State lawmakers ended the session without providing requested funding.

The company’s owner has said he could only redevelop the building with help from the city.